How to Launch a Profitable Side Business as a Software Engineer

7 min read
May 19, 2024
It’s like Uber… for cats!

I've lost track of how many businesses I've started that didn't succeed.

  • At the beginning, there was the diary app which never managed to attract more than a single user.
  • And then the startup for real estate transactions that I dedicated three years to only resulted in a measly $10k investment offer. 😿
  • Following that was a real-time CSS tool which appeared to be impressive, but nobody was interested.
  • Who could forget the learning management system or the app for actors to upload their auditions? Those projects felt more like glorified side endeavors... and they ended up costing me a lot in AWS credits.

I've finally achieved some success with my current business. Last year I made around 20K in sales. Besides managing this venture, I'm a full-time engineering manager and a father. It's certainly more than just a side hustle but doesn't demand the time of a full-time job.

If you're a software engineer thinking about launching your own business, I’m going to share some straightforward, practical advice to get you started and explain what I would change if I were starting from scratch today.

As a coder, you possess a highly valuable skill and assist others in generating substantial profits by bringing their ideas to life. So, why not create something of your own?

Sadly, there's a good chance you'll make one of the four critical mistakes that almost ruined my business. I want to assist you in steering clear of these errors to give you the greatest shot at success.

When I first began, I had no idea about all the things I was unaware of. I believed that my expertise as a software engineer would be sufficient to create a product that people would be willing to buy.

Wrong.

I missed some obvious steps:

  • Is anyone interested in the thing I’m creating?
  • Have any other businesses experienced success with a comparable offer?
  • What exactly do I provide?
  • What strategies can I use to promote this product?

Let's dive into the process of turning your idea into a minimally viable product (MVP) and gaining your first customer in just 4 steps:

One of the strongest signs that your product or service will attract paying customers is the existence of a similar product or service that people are already buying.

If you are just beginning — I suggest starting with a service-based offer such as teaching a skill or providing a short course that enables a customer to quickly move from point A to point B.

For instance, providing bootcamp graduates with lessons on writing unit tests. Maybe offering a crash course in NextJS. How about a public speaking workshop tailored for introverted software developers?

A service-based offer isn't simple to scale up. And that's perfectly fine.

Your aim should be to make sure your service functions well, gather client feedback, and achieve outstanding outcomes. Over time, you'll notice patterns and recurring challenges. That's the point when you turn your service into a course, book, or recording, allowing others to gain from it without the cost of one-on-one sessions.

1 on 1’s should be priced (reasonably) at a premium. This approach helps ensure the customer values the program and minimizes interactions with unreliable clients, thereby attracting a higher caliber of clientele.

I kicked off my venture on Instagram with just under 500 followers. Thanks to a couple of fortunate viral posts, I've now expanded to nearly 10k followers. Feel free to follow me at BrianJenneyCode if you're interested.

My offer back then?

I collaborate with software engineers to ace their upcoming interviews without the need to tackle hundreds of LeetCode problems. We stay committed until you're hired.

I collaborate with software developers to ace their upcoming interviews without having to solve hundreds of LeetCode problems. We keep going until you're hired.

This method helped me land my initial three clients.

You don't have to have a massive audience to begin earning income. What you really need is a solid offer.

A good offer should provide a guarantee with a result and shift the perceived risk away from the customer.

My latest product, Not Another Course, is designed to accelerate your journey to becoming a senior software engineer with unique practical exercises you won't find anywhere else.

This offer needs some improvement, and in my opinion, the product currently includes an excess of content. Once I repackage it, it will be marketed as a developer survival guide aimed at navigating the first six months in a new job. All extra materials will concentrate solely on achieving this specific objective.

I scaled my LinkedIn from 1k to 25k followers through a mix of luck, steady effort, and hardly any viral posts.

Same deal with my Instagram. I gained 90% of my followers from just 2 viral posts.

Consistency > intensity every single damn time.

Consistency > intensity every single damn time.

I barely make any money from either account. However, I've built many incredible connections, secured business deals, and booked speaking engagements. I enjoy writing there and have no intention of stopping.

Likes aren’t money, my friend. You also can’t have zero followers.

Get started on a platform—IG, TikTok, LinkedIn, whichever works for you.

Your posts should focus on subjects connected to your service. Demonstrate your knowledge, offer a behind-the-scenes glimpse of what you're working on, and ALWAYS have a call to action.

Prompt them to schedule a call to talk about their issue and, if they seem like a suitable match, present your solution and see if they'd like to hear more. If they're interested, guide the discussion towards your offer, detailing your program and eventually covering the cost.

If your offering is a course or an app, just providing a link to the website will be enough.

One aspect I regret about my current marketing approach is that my sales are heavily dependent on my social media activity. On the other hand, Not Another Course doesn't require such a close connection to succeed. It functions effectively as an independent product.

It will be difficult to sell this business to another individual because of my strong personal involvement. I don’t mind that because I enjoy the personal touch and community aspect, but perhaps you might prefer a different approach for your enterprise.

One strategy to ensure your business isn't dependent on your status as a micro-influencer is to explore advertising options. I use Google Ads and Facebook Ads.

The Facebook Ad is designed to attract individual clients for my coaching service. Meanwhile, Google is used to generate traffic for Not Another Course. The FB ads include a lead magnet — a document packed with numerous videos and resources, featuring calls to action at both the top and bottom to book a call with me. To access the document, users must fill out a form, which also allows me to collect their email for follow-up communication.

It's best to start advertising only after you've confirmed that your product is effective and you have secured a few paying customers.

When I initially began, my business setup was quite basic.

Website — Carrd.co

Payments — Stripe

Appointments — Calendly

Creative (ads) — Canva

Literally, that's all there is to it. Earning $20k a year for under $100 in subscription costs.

Honestly, it's likely better if you don’t launch a business.

Being a software engineer can be highly lucrative, and it's significantly more straightforward...

Discovering methods to boost innovation within your company can lead to significant rewards. Get into leadership positions and you have a chance at multiple 6 figures in many cases.

I know a few developers who are over-employed and earn close to a million dollars.

Seriously.

I find the game of business really enjoyable. I love discovering new things about it. My goal is to improve and make a significant impact on the developer community. Although I have no idea where this journey will lead me, I'm having a great time along the way.

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